Treatment of gratuity provisions excludes deduction unless exceptions apply, altering computation of business taxable income. Payments or provisions for employee gratuity from current year profits are non-deductible unless covered by exceptions: approved gratuity fund contributions, amounts payable during the year, or compliant spread-over provisions. Depreciation is allowable on technical drawings and similar knowledge assets. A partner's introduction of a personal asset as capital is a transfer subject to examination for consideration and potential tax-evasion. Prior unabsorbed business losses rank after current year depreciation. Attribution of spouse's or minor's business income treats it as the assessee's own for carry forward and set off. Firm registration requires proper partner execution.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of gratuity provisions excludes deduction unless exceptions apply, altering computation of business taxable income.
Payments or provisions for employee gratuity from current year profits are non-deductible unless covered by exceptions: approved gratuity fund contributions, amounts payable during the year, or compliant spread-over provisions. Depreciation is allowable on technical drawings and similar knowledge assets. A partner's introduction of a personal asset as capital is a transfer subject to examination for consideration and potential tax-evasion. Prior unabsorbed business losses rank after current year depreciation. Attribution of spouse's or minor's business income treats it as the assessee's own for carry forward and set off. Firm registration requires proper partner execution.
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